--The legal and regulatory parameters that govern the fund's operations;

--The capabilities of KA Fund Advisors, LLC as investment advisor.

FUND PROFILE

KYN is a non-diversified, closed-end fund, which commenced its
operations on Sept. 28, 2004. KYN invests principally in equity
securities of energy-related master limited partnerships (MLPs). KYN's
objective is to obtain high after tax total returns for its
shareholders. MLPs are publicly traded limited partnerships.
Energy-related MLPs own domestic infrastructure assets that are used in
the gathering, processing, transportation, storage, refining and
distribution of energy-related commodities.

KED is a non-diversified, closed-end fund, which commenced its
operations on Sept. 21, 2006. The fund's investment objective is to
obtain a high level of total return with an emphasis on current income.
The fund seeks to achieve that investment objective by investing
principally in equity and debt securities of companies in the energy
industry, such as energy related MLPs, midstream companies and marine
transportation companies.

KMF is a non-diversified, closed-end fund, which commenced its
operations on Nov. 24, 2010. The fund's investment objective is to
provide a high level of total return with an emphasis on making
quarterly cash distributions to its common stockholders. The fund seeks
to achieve that investment objective by investing at least 80% of its
total assets in the securities of companies in the Midstream/Energy
Sector, consisting of midstream MLPs, midstream companies, other MLPs
and other energy companies.

KYE is a non-diversified, closed-end fund, which commenced its
operations on June 28, 2005. The fund's investment objective is to
obtain a high level of total return with an emphasis on current income.
The fund seeks to achieve that investment objective by investing
principally in equity and debt securities of companies in the energy
industry, such as energy related MLPs, U.S. and Canadian income trusts,
marine transportation companies, midstream companies and coal companies.

LEVERAGE

As of Oct. 31, 2016, KYN's total assets were approximately $3.9 billion
with senior securities totalling $767 million of notes, $75 million on
the fund's revolving credit facility and $354 million of MRPS. The notes
and credit facility/term loan are both unsecured and rank pari passu in
the fund's capital structure - both senior to the fund's MRPS.

As of Oct. 31, 2016, KYE's total assets were approximately $646 million
with senior securities totalling $115 million of notes, $35 million on
the fund's revolving credit facility and $50 million of MRPS. The notes
and credit facility/term loan are both unsecured and rank pari passu in
the fund's capital structure - both senior to the fund's MRPS.

As of Oct. 31, 2016, KMF's total assets were approximately $518 million
with senior securities totalling $91 million of notes, $33 million on
the fund's revolving credit facility and $35 million of MRPS. The notes
and credit facility are both unsecured and rank pari passu in the fund's
capital structure - both senior to the fund's MRPS.

As of Oct. 31, 2016, KED's total assets were approximately $337 million
with $80 million drawn on the balance on the fund's revolving credit and
term loan facility and $25 million of MRPS. The credit facility is
unsecured and ranks senior to the fund's MRPS in the capital structure.

ASSET COVERAGE

As of Oct. 31, 2016, the funds' pro forma asset coverage ratios, as
calculated in accordance with the Fitch total and net
overcollateralization tests (Fitch OC tests) per the 'AAA' rating
guidelines for the notes and the 'A' rating guidelines for the MRPS,
outlined in Fitch's closed-end fund criteria, were in excess of 100%.
These are the minimum asset coverage guideline required by the fund's
governing documents.

The Fitch OC tests calculate standardized asset coverage by applying
haircuts to portfolio holdings based on riskiness and diversification of
the assets and measuring their ability to cover both on- and
off-balance-sheet liabilities at the stress level that corresponds to
the assigned rating.

As of Oct. 31, 2016, the funds' asset coverage ratio for the notes, as
calculated in accordance with the Investment Company Act of 1940 (1940
Act), was in excess of 300%. The fund's pro forma asset coverage ratio
for total leverage, including the MRPS, as calculated in accordance with
the 1940 Act, was in excess of 225%. These are the minimum asset
coverage ratios required by the legal documents of the notes and MRPS.

NOTES STRUCTURAL PROTECTIONS

Should the asset coverage tests decline below their minimum threshold
amounts (as tested on the last business day of each week for Fitch OC
Tests and on the last business day of each month for 1940 Act tests),
under the terms of the notes, the fund is required to deliver notice to
the note purchasers. The fund is then expected to cure the breach by
altering the composition of the portfolio toward assets with lower
discount factors (for Fitch OC Tests breaches), or by reducing leverage
in a sufficient amount (for both the Fitch OC tests and the 1940 Act
test breaches) within a pre-specified time period.

Failure to cure an asset coverage breach as described above is an Event
of Default under the terms of the notes. The fund must then deliver
notice to the note purchasers and all notes outstanding and any accrued
interest is immediately due and payable if a majority of noteholders
vote for acceleration.

The fund is also prohibited from paying out a common stock dividend if
it fails to cure a breach to the notes' 300% 1940 Act asset coverage
test. Fitch views this as an added incentive to cure and deleverage in a
timely manner, regardless of acceleration by the notes purchasers.

PARI PASSU CLAIM WITH CREDIT FACILITY

Upon the occurrence of an Event of Default per the Note Purchase
Agreements (such as a failure to cure an asset coverage breach) or per
the fund's Credit Agreement, the noteholders and the bank lender will
share in their claim on funds' assets pari passu when receiving payments
as described in each of those agreements. The funds account for this
pari passu status in their calculation of the Fitch OC tests.

MRPS STRUCTURAL PROTECTIONS

Should the MRPS Asset Coverage Test and Fitch OC test decline below
their minimum threshold amounts (as tested weekly for Fitch OC Tests and
monthly for 1940 Act tests) the funds are required to deliver notice to
the MRPS purchasers.

The funds' manager is required to cure the breach by altering the
composition of the portfolio toward assets with lower discount factors
(for Fitch OC tests breaches), or by reducing leverage in a sufficient
amount (for both the Fitch OC tests and Asset Coverage Test breaches)
within a pre-specified time period.

SUBORDINATION RISK

The funds have entered into credit agreements with several lenders. The
rights of lenders to receive principal and interest payments on
borrowings under the agreement are senior to the rights of the MRPS
holders of the funds to receive payment of dividends and redemptions.

Under the credit agreements, the funds may not be permitted to redeem
MRPS or make dividend payments unless at such time no event of default
or other circumstance exists under the credit agreement that would limit
or block redemption payments.

THE ADVISOR

KA Fund Advisors, LLC is the funds' investment adviser, responsible for
implementing and administering the fund's investment strategy and is a
subsidiary of Kayne Anderson Capital Advisors, L.P. (Kayne Anderson) a
Securities and Exchange Commission-registered investment adviser. As of
Oct. 31, 2016, Kayne Anderson and its affiliates managed assets over $24
billion, including approximately 73% in energy companies. Kayne Anderson
has invested in MLPs and other midstream energy companies since 1998.

RATING SENSITIVITIES

The ratings are based on the terms of the Notes and MRPS stipulating
mandatory collateral maintenance and de-leveraging provisions in the
event of asset coverage declines. Should the funds fail to cure an asset
coverage breach, or the note purchasers not declare the Notes due and
payable upon an event of default due to an asset coverage breach, this
may lengthen exposure to market value risk and cause the ratings to be
lowered by Fitch.

Fitch's rating on the MRPS could be negatively affected by material
changes in the portfolios' composition, or changes in the credit
agreement terms that increases the likelihood that a MRPS dividend or
redemption payment could be delayed.

The ratings may also be sensitive to material changes in the credit
quality or market risk profile of the funds. A material adverse
deviation from Fitch guidelines for any key rating driver could cause
the ratings to be lowered by Fitch.

RATING ACTIONS

Fitch takes the following rating actions:

Kayne Anderson MLP Investment Company (KYN)

--$31,000,000 Series W Senior Notes 4.38% due on May 26, 2018 affirmed
at 'AAA';

--$20,000,000 Series Y Senior Notes 2.91% due on May 3, 2017 affirmed at
'AAA';

--$15,000,000 Series Z Senior Notes 3.39% due on May 3, 2019 affirmed at
'AAA';

--$15,000,000 Series AA Senior Notes 3.56% due on May 3, 2020 affirmed
at 'AAA';

--$35,000,000 Series BB Senior Notes 3.77% due on May 3, 2021 affirmed
at 'AAA';

--$76,000,000 Series CC Senior Notes 3.95% due on May 3, 2022 affirmed
at 'AAA';

--$75,000,000 Series DD Senior Notes 2.74% due on April 16, 2019
affirmed at 'AAA';

--$50,000,000 Series EE Senior Notes 3.20% due on April 16, 2021
affirmed at 'AAA';

--$65,000,000 Series FF Senior Notes 3.57% due on April 16, 2023
affirmed at 'AAA';

--$45,000,000 Series GG Senior Notes 3.67% due on April 16, 2025
affirmed at 'AAA';

--$30,000,000 Series II Senior Notes 2.88% due on July 30, 2019 affirmed
at 'AAA';

--$30,000,000 Series JJ Senior Notes 3.46% due on July 30, 2021 affirmed
at 'AAA';

--$80,000,000 Series KK Senior Notes 3.93% due on July 30, 2024 affirmed
at 'AAA';

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